Ross Stores Can't Escape Janitors' Wage Class Action

By Allissa Wickham (January 28, 2014, 8:24 PM EST) -- A California federal judge refused Monday to dismiss a putative class action accusing Ross Stores Inc. of underfunding janitorial contracts, ruling that the retailer should have known the contracts were in danger of violating labor law.

Refuting Ross' argument that the plaintiffs failed to factually support their labor violation claim, U.S. District Judge William Alsup said that work schedules from USM Inc., a janitorial contractor for Ross, clearly showed a "wage gap." After receiving the contract from Ross, USM had subcontracted with local businesses, many of which relied on low-wage or immigrant labor, according to the order.

The judge pointed out...

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